1 

## U.S. Environmental Protec tion Agency, Region 9



## PUBLIC INFORMATION SHEET

M C 

### E LMO 

### C REEK 

### U NIT 

### O IL 

### P RODUCTION 

### F ACILITY



### P ROPOSED 

### PSD P ERMIT 

### A MENDMENT 

### N O



### . NU 05-01

October 2014



### Summary of the Proposed Permit

Amendment

On October 15, 2014, the United States

Environmental Protection Agency (EPA)

Region 9 provided notice of and requested

public comment on a proposal to amend the

Prevention of Significant Deterioration (PSD)

air quality permit for the McElmo Creek Unit

Oil Production Facility (MCU Facility). The

public comment period for this proposed

permit will close on November 20, 2014.

The MCU Facility is owned and operated by

the Resolute Natural Resources Company

(Resolute). The MCU Facility is an oil and gas

operation located near the city of Aneth,

Utah, in the Four Corners area on the Navajo

Nation Indian Reservation.

EPA Region 9 is amending the PSD permit to incorporate pollution limits, and terms and conditions for the

existing Main Flare at the MCU Facility pursuant to a federal Consent Decree (United States v. Mobil Exploration

and Producing U.S. Inc., Case No. 2:05–CV–319, filed June 8, 2005). These pollution limits, and terms and

conditions include Best Available Control Technology (BACT) emission limitations for nitrogen oxides (NO

x ),

carbon monoxide (CO), sulfur dioxide (SO 2 ), and volatile organic compounds (VOCs). Additionally, EPA is

amending the PSD permit to remove and update other applicable requirements in the MCU Facility’s PSD permit

due to equipment that has been shut down and removed from the site. Air pollution emissions for this permit

action would not cause or contribute to violations of any National Ambient Air Quality Standards (NAAQS) or

any applicable PSD increments. Other than the replacement of a fixed speed fan with a variable speed fan to

provide better pollution control at the Main Flare, this permit action does not authorize any new construction

or modification of existing equipment at the MCU Facility.

This document is intended to provide a brief, informal summary of information to assist members of the public

attending the public information meeting and public hearing scheduled for November 20, 2014 for EPA’s

proposed PSD permit amendment for the MCU Facility. For more details about the permit requirements, refer

to EPA’s public notice, the proposed PSD permit amendment, and the Ambient Air Quality Impact Report/Fact

Sheet for this proposed permit action, which are available on the EPA Region 9 permit website:

http://www.epa.gov/region9/air/permit/r9

‐ permits

‐ issued.html

. The administrative record for the proposed Figure 1: Location of McElmo Creek Unit Oil Production FacilityPage 2 of 3 PSD permit amendment may be viewed in person at the EPA Region 9 office in San Francisco, California; for

more information, or to obtain copies of relevant documents, please contact Shaheerah Kelly at (415) 947

‐ 4156

or by email at R9AirPermits@epa.gov

. Shaheerah Kelly can also be reached through EPA Region 9’s toll

‐ free

general information line at (866) 372

‐ 9378.



### What Laws and Regulations Apply to EPA’s Proposed PSD Permit Amendment?

We have prepared this proposed permit amendment based on our PSD regulations issued under the Clean Air

Act at 40 Code of Federal Regulations Section 52.21 (40 CFR 52.21). We believe that the proposed PSD permit

amendment will comply with PSD requirements including the requirements to apply BACT to the existing Main

Flare, and will not cause or contribute to a violation of the NAAQS for the pollutants regulated under the

proposed PSD permit amendment. We have made this determination based on the information supplied by

the permit applicant, our review of the analyses contained in the permit application, and other relevant

information contained in the administrative record for this proposed action. EPA has provided the proposed

PSD permit amendment and Fact Sheet to the public for review, and will make a final decision on the PSD

permit amendment after considering all public comments on our proposal submitted during the public

comment period.

Environmental requirements from other federal, tribal, or local laws are not included in EPA’s proposed PSD

permit amendment unless they are also part of the Clean Air Act PSD program.



### What Does EPA’s Proposed PSD Permit Amendment Regulate?

The federal Consent Decree requires Resolute, as the owner or operator of the MCU Facility, to submit a PSD

application pursuant to the PSD regulations at 40 CFR 52.21 and the Clean Air Act that includes a BACT analysis

and air quality analysis for NO

x , CO, SO 2 , and VOCs. EPA Region 9 is amending the Resolute’s PSD permit that

was initially issued on February 2, 1987 to incorporate these BACT emission limitations, as well as to

incorporate other applicable terms and conditions of the Consent Decree into the PSD permit. We are also

updating the PSD permit to remove equipment that has been shut down and removed from the MCU Facility.

Air pollution emissions from this permit action will not cause or contribute to violations of any NAAQS or any

applicable PSD increments. Additionally, other than the replacement of a fixed speed fan with a variable

speed fan to provide better pollution control at the Main Flare, this permit action does not authorize any new

construction or modification of existing equipment at the MCU Facility.



### How Would EPA’s Proposed PSD Permit Amendment Affect Air Quality?

The PSD regulations require an examination of the impacts of the proposed PSD permit amendment on

ambient air quality for the pollutants regulated under the PSD permit. EPA has reviewed the computer

modeling analysis that predicts the effect of the proposed PSD permit amendment on ambient air quality.

Based on the modeling results, and the technical information that we have reviewed to date, the MCU

Facility’s impacts on air quality and visibility are consistent with limits allowed under the Clean Air Act. The

proposed emission limits on the Main Flare will protect the NAAQS for SO 2 , CO, NO 2 , and ozone (NOx and

VOCs are precursors to the formation of ozone).

The PSD regulations also require that EPA evaluate other potential impacts on 1) soils and vegetation; 2)

visibility impairment; and 3) growth. Based on our review of the analyses provided by Resolute and the

maximum potential concentrations of the visibility

‐ related criteria pollutants

‐‐ SO 2 , CO, NO

x , and VOCs

‐‐ we

do not expect any adverse impacts on visibility, nor do we expect this proposed PSD permit amendment to

result in any adverse impacts on plants and soils or significant growth.Page 3 of 3 

### What Other Actions is EPA Taking in Connection with Its Decision making Process?

EPA has been engaged in consultation with the U.S. Fish and Wildlife Service under Section 7 of the federal

Endangered Species Act to ensure that its proposed PSD permit amendment decision is not likely to jeopardize

the continued existence of any federally

‐ listed endangered or threatened species or result in the destruction

or adverse modification of critical habitat for such species. The MCU Facility is an existing operation, and EPA

Region 9’s action does not authorize any new construction or modification of existing equipment at the MCU

Facility, except for the replacement of a fixed speed fan with a variable speed fan to provide better pollution

control at the Main Flare. Therefore, EPA has determined, and the U.S. Fish and Wildlife Service has

concurred, that this permit action will have no effect on any endangered or threatened species or any

designated critical habitat in the area.

In addition, EPA must consult with the Navajo Nation Tribal Historic Preservation Officer (THPO) to comply

with Section 106 of the National Historic Preservation Act and consider the effects this action will have on

historic sites and cultural resources listed in or eligible for the National Register of Historic Places. EPA is

currently consulting with the THPOs for the Navajo Nation and Ute Mountain Indian tribes.

Finally, in accordance with Executive Order 12898, “Federal Actions to Address Environmental Justice in

Minority Populations and Low

‐ Income Populations,” EPA determined that it would be appropriate to prepare

an analysis to consider environmental justice issues in connection with the issuance of this federal PSD permit

amendment. In our Environmental Justice Analysis, we conclude that the proposed PSD permit amendment

will not cause or contribute to air quality levels in excess of health standards for the pollutants regulated

under the permit, including SO 2 , CO, NO

x and VOCs and that therefore it will not result in disproportionately

high and adverse human health or environmental effects with respect to these air pollutants on tribal,

minority, or low

‐ income populations residing near the Main Flare at the MCU Facility or the community as a

whole. In addition, we determined that we should provide English

‐ Diné translation services at the public

hearing scheduled for November 20, 2014, issue radio public service announcements in English and Diné to

notify affected communities of our proposed PSD permit amendment decision, and make the relevant permit

documents available at several Navajo Nation chapter houses and libraries in the area. The Environmental

Justice Analysis is available to the public as part of the administrative record supporting EPA’s proposed PSD

permit amendment decision.